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C&G’s Guide to Saving For Your First Home
You’re hearing news of historically low interest rates and new properties entering the market, and think to yourself: perhaps it’s time to lean into the Great Australian Dream and buy your first home? It’s a big step, but it’s also the most important investment you’ll make. This latest C&G blog has some useful tips for saving for your first home. Read on!
Start with a budget
Have a look at your current spending habits to decide whether certain expenses are necessary or not. By organising your finances, you can easily see what areas you can cut back on. These might include small luxuries such as dining out, shopping or attending special events. If you are renting your current residence, you may consider moving back to your parents’ house if possible. These suggestions will enable your savings to grow faster and bring your homeowner dreams closer to reality.
Figure out how much you’ll be spending each week, then decide how much you’ll be saving. A good idea is mirroring this amount to what you expect your home loan repayments will be. It will keep you focused on your goals and build good financial habits!
Dust off any debts
This is the long haul, so you don’t want anything weighing you down. It’s a good idea to clear out any outstanding debts, so you have a clean slate to start your savings with. This will also ensure a favourable impression for your future home loan application.
Use goal saving accounts
Most banks have apps for their users, complete with goal saving features designed to make this process easier. Consider using these – perhaps a portion of your weekly or fortnightly earnings can be directed into a first home savings account.
Let others help you
It’s your goal, but you don’t have to do it alone. If you have a special occasion – a birthday, for instance – coming up, ask for money that can contribute to your savings instead of traditional gifts. Communicate your aspirations to your family and friends, even if it means this year’s presents won’t be wrapped up surprises.
Look into the First Home Loan Deposit Scheme
It’s called the Great Australian Dream for a reason! The First Home Loan Deposit Scheme has only come into effect this year, and is designed to help Australians save significant dollars on their first home. This nifty article from realestate.com.au goes into more detail about the grant, listing the prerequisites you need to qualify. Most Australian banks are participating and will be able to answer your questions.
Ask for advice
There’s nothing wrong with that! In fact, real estate agencies like Chisholm and Gamon would be more than happy to help you out. We love discussing property goals, and it’s always a pleasure to help a first home buyer enter the market. You’ll also rest easy knowing you’re in capable hands and making decisions that reflect your best interests.